Wednesday, October 12, 2011

Response to Ms. Shatz

"Like it or not, we need banks. And only large banks have the capabilities to handle this city's financial needs. You guys can't put your money under a mattress." -- Carol Schatz, president of the downtown Los Angeles banking association.

Ms. Schatz, your candor is commendable. Banks are a financial necessity, a utility which suffered under intense overregulation from the United States Government, which created the housing bubble and the successive Great Recession.

As far as civic money stock is concerned, The City of Los Angeles doesn't have any money to store under a mattress to begin with!

All the bankers and financiers, from Wall Street to Pershing Square, should start their own movement. Since massive protest seems to be very good at getting media attention, they could better inform the public why large banking firms and corporations are sitting on large reserves of money.

Maybe if they demonstrated that the Obama administration's addiction to regulation and demagoguery has scared investors and discouraged banks from lending, then the Occupy Wall Street and Los Angeles crowd would march on the District of Columbia and demand the repeal of ObamaCare, onerous regulation reform, an immediate refund of all bailout money to taxpayers, and the final closure of the Fed, whose inflationary tactics have so devalued the dollar, there is little question why so many can buy so little with what money they are still earning.

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